The Straight Scoop
Are Banks Really Getting Out of The Mortgage Business?
By George Weisenburger
Your Local Neighborhood Mortgage Superhero
In a blog article in the Huffington Post last week, Ben Tripp claimed qualified home buyers couldn't get loans and that banks were getting out of the business of making mortgage loans on homes.
What did he base his claims on?
As it turns out his claims are only based on the fact that the underwriters of home loans now require a lot more paperwork than in the good old days.
Mr. Tripp is correct about more paperwork for loans as compared to pre-housing bubble burst days. Believe me, I don't like it either. But it's the world we live in today. Because of the recent housing bloodbath, underwriters are on a mission to drive the risk of making a home loan down to zero if they can.
Some of the stuff they do is ridiculous though. Recently, the underwriters spotted a $500 deposit on my clients bank statement and wanted documentation of where it came from. This was really annoying when you consider the fact that my clients had four times document funds in their bank account than they needed to do the deal!
I would anticipate that over time this crazy stuff will go away.
As far as banks getting out of the home loan mortgage business as Mr. Tripp claimed I only have one thing to say about that... "Are you nuts?"
The banks are competing big time for business from Loan Officers like myself. They want our business. They come up with attractive rates and fee packages as well as special programs on a regular basis.
So what I'm saying is that banks are chasing me so they can fund your loan so don't worry about thats.
So if you find yourself reading some sensationalize media report in the news about the housing and financing community and want to know what the straight scoop is come back here and I'll let you know what's really going on behind the scenes.
